I've been reading the original filing for the last hour.
Here are some key takeaways
Original prom notes was dated June 2 2014 between Sunrise Auto Mall and David Grey
On July 1 2015 David Grey sold the prom note back to Charles Vacarro for $250k?
Same date the company (SND) assumed liability for the note...meaning CV not only the owner but now lender to Sign and Drive
July 18 2016 CV sold 25k of the debt to Southridge
July 25 2016 Southridge converted $3,300 dollars for 3,882,353 shares of common stock. Those were later sold in July 2017
Jan 30 2017 and again in April 2017 Southridge attempts to convert $4,161.64 of principal for 2,972,600 shares but were refused
Merger occurred on March 3, 2017 essentially isolating the 25k from the new companies share structure (POTN).
CV then retired the remaining debt in exchange for the right to receive over 577M shares of POTN.
The debt with Southridge isn't the problem, somehow CV is the controlling owner of the company, and he was the one that received the 25M share conversion early in 2018 in exchange for 300k off the debt.
The share retirement/conversion to preferred is to shift CV's common stock to preferred.
At this point the debt remains on the books since not all of those shares have been issued to CV. It appears that POTN is trying to pay him down so the liability goes away. For that to happen he has to agree to the conversion to preferred and also waive rights to convert back to common stock.
AI
